How Bad Was South America’s Drought on the Crops?

The market is trying to determine how much damage has been done to the crops in Argentina and Brazil. Corn and Soybean Advisor President Michael Cordonnier says the drought was very severe in southern Brazil and that brought the soybean crop lower. “The weather in Brazil was unusual, the worst drought in modern history in the southern part of the country, but good rains in the northern part. The soybeans are about 65 percent harvested and we have a good idea of final production,” says Cordonnier. “In Argentina, the corn is only about five percent harvested, soybeans one percent harvested. Weather has improved there and crops have likely stabilized in this lower area.” With a poor year for corn and soybeans in most of Brazil and Argentina, the world balance sheet is tight.